indicator
Withholding Taxes on Dividends
Anti-abuse gaps
About the indicator
When a country does not withhold tax on dividend payments made by resident subsidiaries of multinational corporations to affiliates outside the country within the same group, it reduces the government’s tax revenue collection associated with income generated within a country’s borders. It also creates an incentive for profit shifting, which may cause other countries to lower their tax rates in response in a race to the bottom. This indicator assesses the country’s lowest withholding tax on outbound dividends and compares it with the highest available unilateral withholding tax rate on dividends worldwide.
distribution of indicator scores
See how countries score on this indicator. A low score means a country's laws under this indicator allow little room for corporate tax abuse. A high score means its laws allow a lot of room.
Questions
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Jurisdiction’s laws and regulations are evaluated against more than 70 questions to arrive at a Haven Score. These questions are organised into 18 indicators, which are grouped into five indicator groups.
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